Content: I. Current Rice Export Situation 1. Current Demand for Rice Export 2. Development Prospects for Rice as a Commodity II. Regulations on Rice Export 1. Policies and Regulations Related to Export 2. Conditions and Requirements for Rice Export Authorization III. Documentation and Procedures for Export Certification of Rice 1. Documentation for Obtaining Export Business Certification 2. Procedures for Export Certification IV. HS Codes and Tariffs for Rice Commodities 1. HS Codes for Rice 2. Types of Taxes Applicable to Rice Export V. Documentation for Rice Export Procedures VI. Phytosanitary Procedures for Rice Export VII. Conclusion
Rice export is a vital sector in Vietnam's economy, playing a crucial role in international trade. As we approach 2023, the demand for rice exports continues to rise. This article provides a step-by-step guide from understanding essential procedures, HS codes and tariffs, customs procedures, contract registration, documentation requirements, to important considerations and business opportunities in this industry.
I. Current Rice Export Situation
1. Current Demand for Rice Export
Rice contributes significantly to Vietnam's total export revenue. The demand for rice exports continues to grow, especially from potential markets such as China, Indonesia, the Philippines, and African countries. Vietnam's provinces are actively collecting rice from rural areas to meet export demands and enhance the value of rice exports.
2. Development Prospects for Rice as a Commodity
In 2023, Vietnam's rice exports are expected to show robust growth. The rice export market is experiencing positive changes, with high demand from potential partner countries. In the context of global challenges such as pandemics and economic crises, rice exports play a crucial role in maintaining and developing the national economy.
II. Regulations on Rice Export
1. Policies and Regulations Related to Export
While rice is encouraged for export, understanding the policies regarding rice export is crucial for businesses entering this field. Refer to the following documents for a better understanding of export policies and regulations:
Decree No. 107/2018/NĐ-CP of the Government: On rice export business
2. Conditions and Requirements for Rice Export Authorization
Traders must meet specific conditions to conduct rice export business. These include:
Establishing and registering the business according to legal regulations.
Having at least one dedicated warehouse for storing rice, meeting national standards and technical regulations.
Having at least one rice milling or processing facility that complies with national standards and technical regulations.
Warehouses, processing facilities, and equipment can be either owned by the trader or leased through written contracts for a minimum of five years.
III. Documentation and Procedures for Export Certification of Rice
1. Documentation for Obtaining Export Business Certification
The Ministry of Industry and Trade is responsible for issuing business certifications for rice export. The required documents include:
Application for Issuance of a Certificate of Eligibility for Rice Export Business (1 original).
Certificate of business registration or enterprise registration, investment certificate (1 certified true copy).
Lease contracts for warehouses or processing facilities or documents proving land use rights, ownership of warehouses, processing facilities (if owned by the trader) (1 certified true copy).
2. Procedures for Export Certification
Traders can submit their applications directly to the Ministry of Industry and Trade's office or send them by mail. Alternatively, applications can be submitted online through the Ministry's electronic service portal.
For in-person submissions, traders should bring copies of the required documents for verification against the original copies. Within 15 working days of receiving a complete and valid application, the Ministry will review and issue the Certificate of Eligibility.
If the Ministry decides not to issue or adjust the content of the certificate, a written response with reasons must be provided within 7 working days of receiving the application.
Certificates of Eligibility are valid for five years. Before expiration, traders must apply for a new certificate to continue rice export operations.
IV. HS Codes and Tariffs for Rice Commodities
1. HS Codes for Rice
The Harmonized System (HS) codes for rice depend on the specific type of rice. The HS code for rice falls under Chapter 10 - Cereals, more specifically under group 1006. Here are the detailed HS codes for different types of rice:
HS Code for Paddy Rice: 100610
HS Code for Husked (Brown) Rice: 100620
HS Code for Fully Milled or Semi-Milled Rice, Whether or Not Polished or Glazed: 100630
2. Types of Taxes Applicable to Rice Export
As per current regulations, both Value Added Tax (VAT) and Export Duty are completely exempt for rice exports. The details are as follows:
Value Added Tax (VAT): VAT for rice exports is 0%, meaning no VAT is applied to the export value of rice.
Export Duty: Currently, the export duty for rice is 0%, indicating no export duty is levied on rice exports.
This tax exemption on both VAT and export duty enhances the attractiveness of the rice industry and facilitates efficient export activities.
V. Documentation for Rice Export Procedures
Customs clearance documentation for rice exports includes:
Export Customs Declaration
Export License for Rice
Additional documents may be required based on the importer's requests, such as a Certificate of Origin, Certificate of Quality, Certificate of Health, Phytosanitary Certificate, Fumigation Certificate, and others.
VI. Phytosanitary Procedures for Rice Export
Phytosanitary is a mandatory requirement to ensure that exported rice is free from harmful pests and diseases. The documentation for Phytosanitary includes:
Phytosanitary Registration Certificate (according to the form of the competent inspection authority specified in Appendix IV attached to Circular 33/2014/TT-BNNPTNT).
Commercial invoice, bill of lading, packing list if any.
Letter of authorization from the owner (in case the registrant is authorized by the owner).
Sample of the rice batch to be inspected.
Rice exports play a significant role in Vietnam's economy. To succeed in rice exports, businesses need to understand relevant regulations and procedures, ensure rice quality, explore potential markets, and invest in improving rice quality for enhanced competitiveness. This article aims to provide useful information to readers. If you have any questions about rice export procedures, feel free to contact us for free consultation.
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